News : Economy

Iran's Oil Minister Bijan Zanganeh told reporters on Tuesday that a global oil cuts deal is likely to be extended, but that time is needed to discuss the subject thoroughly first.

"It seems that most of the OPEC and non-OPEC (countries) are going to extend the agreement, but time is needed to evaluate the situation and to have face-to-face meetings and discussions with others," Zanganeh, who was visiting Moscow, said, Reuters reported.

Asked whether Tehran would be ready to cut its own output under the possible extension, Zanganeh said: "I think it is necessary that all members comply with their commitments."

Iran's current oil production stands close to 3.8 million barrels per day, he said. Zanganeh is part of a delegation led by Iranian President Hassan Rouhani which is visiting Russia from 27-28 March.

Analysts, however, have suggested that Iran's position stems from its inability to maintain high level oil production.

“Iran has reached its maximum potential for oil production,” Chatham House Associate Nikolay Kozhanov told RBTH earlier this month. Headded that Tehran would not be able to increase production without a significant amount of investment.

The investments are needed not only to increase, production, but even to maintain the current level, as “Iran’s oil industry is not in the best shape,” Kozhanov said.

Iran’s willingness for a freeze means that Tehran is trying to get political dividends from the situation, the expert added.